U.S. Treasury yields were higher on Monday as investors looked ahead to key economic data due throughout the week, including fresh inflation insights.
The yield on the 10-year Treasury was up by less than 1 basis point at 4.281%. The 2-year Treasury yield also climbed more than 2 basis points to 4.62%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors awaited the latest data that could provide clues about the outlook for Federal Reserve monetary policy following last week’s insights into the labor market.
Data released Friday showed that nonfarm payrolls increased by 206,000 in June, more than the 200,000 Dow Jones forecast. June’s jobs report also showed that the unemployment rate unexpectedly rose to 4.1% rather than holding steady at 4% as expected.
The data comes at a time where uncertainty about when interest rate cuts could begin remains widespread. Minutes from the Fed’s latest meeting published last week showed that policymakers are looking for more evidence that inflation is easing before deciding to move rates.
June’s consumer price index is slated for this week and could provide clues about when the first rate cut could come, depending on whether the data suggests inflation is easing back to the Fed’s 2% target.
The producer price index, which tracks wholesale inflation, is also due this week and Federal Chairman Jerome Powell is expected to give testimony about expectations for the economy and monetary policy before Congress.
